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SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

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431–440 of 489 posts

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#431

Earlier quoted context omitted.

Hard disagree- the appearance of wrongdoing can be nearly as harmful for the accused and cause as much trouble as actual wrongdoing. Both should be avoided.

Another Hard Disagree. I put everything thing in writing. If it’s not written down it didn’t happen. Want access to prod? Sure give me a ticket. I don’t trust any place that doesn’t want things written down. And the example of a drug trial comment being taken out of context? If it looks bad in a few years maybe it should also look bad now? And maybe steps should be taken to make it better now. Writing things down, ke…

In my country, there were some major anti-government protests a few years ago that pro-government media claimed were paid for by Sorosz and other such figures. My colleagues and I attended these protests and often talked about them. We also often joked about these claims by asking each other if the checks had arrived, how much they had made last night etc.

Of course, if our internal chats were subject to [the local equivalent of] FOIA requests, this would have been incredibly risky, since without the context of how much we laughed about them, the texts themselves would have looked like smoking guns. Government media would have had a field day.

This is the benign sort of thing you want to avoid putting in writing if your writing can be audited by motivated outside parties.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#432
post #40

> In one instance, the Binance chief compliance officer messaged a colleague that, “[w]e are operating as a fking unlicensed securities exchange in the USA bro.” Source: https://twitter.com/JohnReedStark/status/1665748594421297152 This is a legendary quote from the filing.

My theory is that Binance execs were having these chats in an encrypted medium (e.g. WA or Signal) but didn't secure themselves against a defector. I think someone on the inside took screenshots and went to the feds (or started cooperating under legal pressure). There's even a leading candidate [0]. What's funny about this is it's a fine metaphor for what ails crypto as a whole. The technology is cryptographically se…

>The technology is cryptographically secure, but not at all robust to much simpler betrayals, hacks, etc. If you trust overmuch in the tech and don't focus on less technically interesting but more fundamental threats, you're apt to get rekt.

Isn't this the case with anything to do with cryptography, encryption, and digital security overall?

Because let's face it: Who seriously cares if your password is cryptographically hashed with 40960-bit SHA-9001 encryption transmitted over TLS8.11 For Workgroups?

Just call up the call center and convince the scriptmonkey you really are John Dickus the Fifth and get them to reset the password for you. Easy. Done. No quantum computer required to crack the code.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#433

Earlier quoted context omitted.

My theory is that Binance execs were having these chats in an encrypted medium (e.g. WA or Signal) but didn't secure themselves against a defector. I think someone on the inside took screenshots and went to the feds (or started cooperating under legal pressure). There's even a leading candidate [0]. What's funny about this is it's a fine metaphor for what ails crypto as a whole. The technology is cryptographically se…

> "a fine metaphor for what ails crypto as a whole. The technology is cryptographically secure, but not at all robust to much simpler betrayals, hacks, etc." I think you mean "crypto exchanges". Cryptocurrency itself is not subject to betrayals/hacks, for the most part (depending on how dumb you are at key management). And depending on how badly you selected your cryptocurrency (pro tip: just pick Bitcoin).

Bitcoin is actually a perfect example, since it's impossible to do anything with it except moving it from one account to another without requiring trust of the other party.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#434
post #392

Earlier quoted context omitted.

Bisq. Any centralized crypto exchange will ultimately end up being a scam because there is no reason for centralized exchanges to exist at all. There is no reason for anyone to hold your funds for more than what it necessary to complete a transaction. Because of this, there is really no money to be made.

It's amazing I don't see Bisq discussed more on HN of all places. It's probably the best example of how cryptocurrency should be traded. Custodial services have always been bad news. Decentralized, capable of anonymity, and with transparent prices. The last bit makes the huge spread of cryptocurrency more obvious, which would go a long way towards helping the casual user understand the volatility.

It's interface is dysfunctional and can freeze a $4.000 custom built Desktop machine.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#435
post #326

Earlier quoted context omitted.

I suspect Binance is prepared and they will simply not comply. Nothing is physically in the US to be seized (except maybe the binance.us domain).

Do Kwan and Sam Bankman-Fried also tried evading arrest by not being in the US. Didn't work so well.

Worked for Snowden.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#436

Earlier quoted context omitted.

That's why Bitcoin is so powerful: they can't do anything about it and, if people choose to use it, the government has no choice other than accept it as the standard.

a government that accepts tax payments in BTC would be abandoning its financial authority to the bitcoin network, over which it has no influence whatsoever this is suicidal for any nation with even a nominal amount of financial autonomy maybe it's something that failed states like venezuela or somolia would consider, but it's a complete non-starter for anyone else the idea that "the people" can force countries to acc…

> the idea that "the people" can force countries to accept tax receipts in BTC is absolute unhinged nonsense, read a fucking book

Government money will worth shit if people stop putting their savings in it. Unless you think the US government will make it ilegal to possess BTC, then it is just a matter of time for people to migrate to a better store of value.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#437
post #174

One thing I noticed, which always felt possibly-illegal, was how Binance and other exchanges would frequently freeze up funds that didn't meet minimum withdraws. If a coin fell to too-low of a price, they'd essentially just keep them. Sure, it is only $5-100 here and there, but that all adds up. Where does it go? With a real bank or exchange, I'd expect some ability to sweep up my accounts and get a paper check for 5…

If I remember correctly you could always exchange those low amounts for their shitcoin, then exchange that for something with reasonable withdrawl fees like monero and withdraw that. (or even withdraw their shitcoin and exchange it elsewhere if it was below their minimum exchange amount)

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#438
post #383

Earlier quoted context omitted.

Why aren't they suing Coinbase as well?

Why would they? Have Coinbase done anything similar to what Binance is being sued by the SEC for? You could check the court filing and let us know. And don't stop there. If you've found wrongdoing at Coinbase the SEC would be interested in, feel free to submit a tip to the SEC ( https://www.sec.gov/whistleblower/submit-a-tip ). Many people have made millions off these tips. This could be your time to shine.

On a separate note, if I wanna file a compliant against a couple other fintechs regarding serious violations, how would I be rewarded? Do you have more clarity? Would appreciate some help!

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#439
post #434
post #392

Earlier quoted context omitted.

It's amazing I don't see Bisq discussed more on HN of all places. It's probably the best example of how cryptocurrency should be traded. Custodial services have always been bad news. Decentralized, capable of anonymity, and with transparent prices. The last bit makes the huge spread of cryptocurrency more obvious, which would go a long way towards helping the casual user understand the volatility.

It's interface is dysfunctional and can freeze a $4.000 custom built Desktop machine.

How? I run it on an old i5 16gb ram think-pad among few other things without any issues.

Re: SEC Sues Binance and CEO Zhao for Breaking US Securities Rules

#440
post #392

Earlier quoted context omitted.

Bisq. Any centralized crypto exchange will ultimately end up being a scam because there is no reason for centralized exchanges to exist at all. There is no reason for anyone to hold your funds for more than what it necessary to complete a transaction. Because of this, there is really no money to be made.

It's amazing I don't see Bisq discussed more on HN of all places. It's probably the best example of how cryptocurrency should be traded. Custodial services have always been bad news. Decentralized, capable of anonymity, and with transparent prices. The last bit makes the huge spread of cryptocurrency more obvious, which would go a long way towards helping the casual user understand the volatility.

Exactly! And for the "get rich by trading" gamblers, the large spread is great as you can actually make money by providing liquidity and arbitrage to centralized exchanges.
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